Article Image
IPFS News Link • Transportation

Car Sales Plunge 33 Percent in the 2nd Quarter Despite Deals

• https://www.thestreet.com, Mish

Despite Deals and Covid-19 Stimulus sar sales plunged a record amount. But due to factory shutdowns and stimulus offers, dealer inventories are lower than normal. 

Second-Quarter Sales Drop 

Auto sales in the second-quarter are down by about a third according to the Wall Street Journal.

General Motors Co.reported a 34% drop in second-quarter sales compared with a year ago, with demand picking up in May and June. Toyota Motor Corp.'s sales fell by about a third while Fiat Chrysler Automobiles reported a 39% decline. 

The drop wasn't as steep as feared, and sales have improved steadily since late March. Heavy sales promotions and federal stimulus checks that went out to millions of Americans this spring spurred car demand despite spiking unemployment and stay-home orders across many states, dealers and analysts say.

In recent weeks, retail sales, or sales to individual buyers, have tracked just 4 to 6% below pre-Covid-19 forecasts, according to research firm J.D. Power.

"The market and the retail consumer continue to recover beyond anyone's expectations," Bob Carter, Toyota's sales chief for North America, said recently.


Purse.IO Save on All Amazon Purchases